Ripple was rejected near the $0.2250 resistance area against the US Dollar, similar to bitcoin near $8,450. As a result, there was a downside correction in XRP below $0.2150 and $0.2100.
- Ripple price is down more than 10% and it is now trading below $0.2100 against the US dollar.
- The price even failed to stay above the key $0.2080 support area.
- There is a major bearish trend line forming with resistance near $0.2105 on the hourly chart of the XRP/USD pair (data source from Kraken).
- There are chances of more losses unless the price climbs above $0.2100 and $0.2100.
Ripple Price Facing Hurdles
After a strong increase, ripple failed to surpass the $0.2250 resistance area against the US Dollar. There was a sharp bearish reaction in XRP and the price declined below the $0.2150 support.
Moreover, there was a break below the $0.2100 support and the 100 hourly simple moving average. The bulls even failed to protect the $0.2080 support and the price traded as low as $0.2031.
A similar price action was observed for bitcoin after it was rejected near the $8,450 level. BTC is down 5% and it broke the $8,080 support area.
Looking at ripple, it is currently correcting higher after trading as low as $0.2031. It recovered above the 23.6% Fib retracement level of the recent decline from the $0.2170 high to $0.2031 low.
However, the previous support near $0.2080 is now acting as a hurdle. More importantly, there is a major bearish trend line forming with resistance near $0.2105 on the hourly chart of the XRP/USD pair.
The 50% Fib retracement level of the recent decline from the $0.2170 high to $0.2031 low is also near the $0.2100 level to prevent an upside break. Therefore, ripple needs to climb above $0.2080, $0.2100 and $0.2120 to start a fresh increase.
One Final Push In XRP To $0.2000?
The current price action suggests that XRP might be setting up for a final downside thrust below the $0.2050 level. In the mentioned scenario, the price might spike towards $0.2000 or $0.1980 before it starts a new upward move.
Looking at the chart, ripple price is clearly broke a couple of important supports to invalidate the chances of a run towards $0.2400. Still, the price is likely to bounce back until there is no daily close below $0.2000.
Hourly MACD – The MACD for XRP/USD is about to move into the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now well below the 50 level.
Major Support Levels – $0.2050, $0.2000 and $0.1980.
Major Resistance Levels – $0.2080, $0.2100 and $0.2120.